$TSLA So why is Tesla trading higher in response to this offering? It would have been somewhat irresponsible for the company not to raise equity capital with the stock up over 90% year-to-date (that is, in the last six weeks) given the company's balance sheet and ambitious product pipeline. The company was eventually going to need more capital to fund a Gigafactory in Germany, in addition to building the CyberTruck, semitruck, and the new roadster after the Model Y. Despite Tesla's proclamation that it will be cash flow positive going forward, this offering reduces balance sheet risk by increasing the company's cash position by more than 30% from $6.3 bln. Tesla short sellers continue to get squeezed. Yesterday, S3 Partners reported short interest was 15% of the float. Short interest has been cut in half since December, and more shorts are getting squeezed today as reduced balance sheet offsets the ~1% dilution.
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